Nubits (USNBT) held onto the dollar peg for months, but finally succumbed to market forces, failing to recover for days after a dip to $0.50. Nubuts crashed as low as $0.35, later regaining to $0.55.
USNBT is not backed by anything except for market forces and demand - and with a crash of trading volumes, the crypto coin, which was intended to be pegged to the dollar, crashed and wiped out value.
USNBT was available as a fixed-price option on Bittrex and Upbit. But for those that parked money there, the last week must have been a nightmare. Unlike Tethers (uSDT), the lesser known pegged coin did not manage to perform as promised.
!USNBT!
Unfortunately, Nubits has no mechanism to reclaim the peg, and relies on market forces, meaning that users would need to stop panic-selling. Also, the market for NuShares seems to be dwindling, not allowing for extra liquidity to prop up the price of NuBits.
https://twitter.com/Beetcoin/status/984452826129629184
NuShares (NSR) saw a massive pump in January, reaching $0.02, on volumes that quickly dwindled to nothing, leaving the coin with no credibility and a price of $0.0003. This could potentially doom NuBits, which has made no promises to be backed by fiat, and instead relied on NuShares to prop up the project.
Meanwhile, tokens like bitUSD (BITUSD) and True USD (TUSD) are keeping their peg, so far. Tethers are also at near $1, and are the most influential stablecoin on the market.
For about a week now, NuBits has transformed from a promising stablecoin to a speculative asset, as it is unknown whether the team would manage to effectively manipulate the price. As the price rises, more selling may happen by those who bought at low prices. This means that NuBits may remain permanently depressed, especially if the team runs out of funds.
In this, NuBits recalls situations of fiat manipulation, where a stable course is impossible to keep in the face of market forces.
This article appeared first on Cryptovest
